U.S. Treasury Authorizes Banks to Use Stablecoin to Make Payments

In March 2020, Congress introduced legislation to that would authorize the Federal Reserve to create “digital wallets” and administer digital money to American citizens. The digital money would be created by its own authority (electronic money creation). https://www.congress.gov/bill/116th-congress/senate-bill/3571/text

In early January 2021, the Treasury authorized banks to make payments using a type of Cryptocurrency called Stablecoin. https://www.occ.treas.gov/news-issuances/news-releases/2021/nr-occ-2021-2.html. We should all be aware of this development as it is a significant shift in policy for the U.S. Treasury. I will try to learn more and share as information becomes available. A special thanks to Catherine Austin Fitts (https://home.solari.com/) for bringing this to my attention.

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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